Risk governance: Manage the risks

Go to Course: https://www.coursera.org/learn/risk-governance-engage-the-board

Introduction

### Course Review: Risk Governance: Manage the Risks In today's complex and fast-paced business environment, organizations face a multitude of risks that can affect their sustainability and success. Understanding and managing these risks is critical, not just for survival but also for the growth and resilience of any organization. "Risk Governance: Manage the Risks," offered on Coursera, provides a comprehensive and structured approach to navigating the complexities of risk governance. #### Course Overview The course sheds light on fundamental governance issues that organizations encounter. It intricately addresses questions like identifying stakeholders, understanding their objectives, ensuring fairness, and effectively meeting those objectives. Participants engage in structured learning activities, including video lectures, quizzes, discussion prompts, and written assessments, to glean the insights necessary for establishing a sound governance structure. ### Syllabus Breakdown **1. Risk Management Framework** The opening module reframes the traditional perception of risk management from being merely defensive to becoming an essential driving force for value creation. You will learn how to build a risk management framework that not only reduces risk but also propels your organization toward achieving its objectives. It sheds light on cognitive biases that may hinder effective risk management, empowering you to make better-informed decisions. **2. Foreign Exchange Risk** This section deepens your understanding of the risk management process by focusing on foreign exchange risk—a critical concern for businesses operating globally. Here, you will engage in risk analysis and its impact on resilience. The course emphasizes the importance of effectively visualizing and communicating risk concepts, essential for influencing key stakeholders and decision-makers. **3. Governance** Participants will explore the framework of corporate governance, emphasizing accountability, stakeholder protection, and objective-setting. The course provides an insightful comparative analysis of the classical Anglo-American governance model against alternative frameworks. It also addresses contemporary challenges, such as short-termism and poorly designed incentive schemes, ensuring you grasp the nuances of governance in today's corporate landscape. **4. Risk Governance and Culture** Building upon previous knowledge, this module showcases how operational decisions can effectively manage risks instead of solely relying on financial hedges. It equips you with a set of frameworks tailored for effective risk governance, focusing specifically on managing foreign exchange risks. **5. Operational Risks** The section addresses the importance of foresight in identifying emerging risks. Using cyber-risk as a case study, participants will explore practical issues around analysis and treatment. This exploration fosters a robust understanding of when insurance can serve as a viable solution and when it might not. **6. Misconduct Risk** This closing module tackles the "dark side" of risk: workplace misconduct. It dives into the various factors influencing unethical behavior—ranging from individual attributes to systemic issues within organizations—and offers strategies to promote ethical behavior among employees. Understanding these dynamics is crucial for creating a more ethical workplace culture. ### Recommendation "Risk Governance: Manage the Risks" is an essential course for professionals in various fields, including finance, compliance, management, and strategy. Whether you're a novice wanting to understand the basics of risk management or an experienced professional aiming to deepen your knowledge, this course delivers valuable insights. **What I Love About This Course:** - The structured approach ensures clarity in learning while engaging various learning methods. - The blend of theory and practical application helps participants relate concepts to real-world scenarios. - It encourages critical thinking about both ethical dilemmas and strategic risk management. **Who Should Enroll:** - Business leaders and managers seeking to enhance their organization's resilience. - Compliance officers and risk managers aiming to develop a more robust risk governance framework. - Anyone interested in understanding the intricate balance between taking risks and managing them effectively. In summary, if you're looking to elevate your understanding of risk governance and management, "Risk Governance: Manage the Risks" on Coursera is highly recommended. It equips you with the practical knowledge and frameworks necessary to navigate the complexities of modern organizational challenges effectively.

Syllabus

Risk management framework

Most people wrongly consider risk management to be a purely defensive activity; they think that risk management is all about risk reduction. On the contrary, risk-taking is essential in any organisation. This week you will learn how to create a risk management framework that both creates and protects value, supporting the achievement of your organisation’s objectives. You will also gain insights into common biases that prevent individuals and organisations from managing risk well, as part of the overall suite of influencing capabilities.

To better understand the risk management process, you will apply it to a particular risk that affects many firms operating in global markets: foreign exchange risk. This week you will focus on risk analysis, to demonstrate how foreign exchange movements might impact on firm resilience through the balance sheet. Analysis leads naturally to visualisation and communication of risk concepts – crucial tools for influencing risk management decisions.

Corporate Governance is the framework of rules, relationships, systems and processes by which authority and influence are exercised in corporations. Corporate governance also encompasses crucial issues such as accountability of leaders, protection of stakeholder interests, setting of objectives and risk management. This week you will consider the classical Anglo-American governance model for listed firms with its emphasis on shareholder rights. You will compare this with alternative governance models. Finally, you will also consider some contemporary governance challenges such as the ‘curse’ of short-termism and poor design of incentive schemes.

You will continue your application of the risk management process to foreign exchange risk. This week the focus is on the treatment of risk. You will consider a wide range of options, highlighting the capacity of firms to manage risks through operational decisions rather than relying on derivative contracts. You will conclude with frameworks for risk governance, to ensure that risk is managed effectively.

Future-focussed firms must always have an eye to emerging risks. These risks can be among the most challenging to manage because they are poorly understood and difficult to quantify. You will use Cyber-risk as an exemplar to draw out practical issues of analysis and treatment. In this context you will also consider the conditions when insurance may, or may not be, an effective solution.

Unfortunately it’s a fact that staff sometimes violate policies and act in a manner that is not in the long-term best interests of stakeholders. This week you will seek to understand the dark side of risk – why people misbehave at work – and what can be done to minimise the possibility of misconduct. Is it due to individual factors (bad apples), characteristics of the workplace (bad barrels) or perhaps characteristics of the whole industry (bad orchards)? How can we influence ourselves and others to behave ethically?